October 26, 2017

U.S. wheat export sales were in line with estimates, but nothing stellar. HRW was poor and the 50 kmt of unknown sales are believed to be some old Algeria or Moroccan business that had not been reported earlier. This certainly does not justify the rally in basis at the gulf, but there are 1.9 mmt of open sales. The SRW sales were even worse but there are 560 kmt of open sales, again nothing to justify the strength in cash basis. HRS sales continue strong, yet PNW export basis does nothing with 1.3 mmt open sales, and SWW continues to rock along with 124 kmt sales and 1.25 mmt of open sales. If we’re not doing the export business the basis rally has to come from the domestic market. Or this is what needs to happen to pull wheat out of storage when cash basis has been so far below DVE for HRW, HRS, and SRW.

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